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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2977 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 2977

   To amend the Federal Election Campaign Act of 1971 to provide for 
      additional disclosure requirements for corporations, labor 
 organizations, Super PACs and other entities, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2019

  Mr. Cicilline (for himself, Mr. Aguilar, Mr. Allred, Mrs. Axne, Ms. 
 Barragan, Ms. Bass, Mrs. Beatty, Mr. Bera, Mr. Beyer, Mr. Blumenauer, 
      Ms. Blunt Rochester, Ms. Bonamici, Mr. Brendan F. Boyle of 
  Pennsylvania, Mr. Brindisi, Mr. Brown of Maryland, Ms. Brownley of 
  California, Mrs. Bustos, Mr. Carbajal, Mr. Cardenas, Mr. Case, Mr. 
Casten of Illinois, Ms. Castor of Florida, Ms. Judy Chu of California, 
 Mr. Cisneros, Ms. Clark of Massachusetts, Ms. Clarke of New York, Mr. 
 Cleaver, Mr. Cohen, Mr. Cooper, Mr. Courtney, Mr. Cox of California, 
Mrs. Craig, Mr. Crist, Mr. Crow, Mr. Cunningham, Ms. Davids of Kansas, 
   Mrs. Davis of California, Ms. Dean, Mr. DeFazio, Ms. DeGette, Ms. 
 DeLauro, Ms. DelBene, Mr. Delgado, Mrs. Demings, Mr. DeSaulnier, Mr. 
 Deutch, Mrs. Dingell, Mr. Doggett, Mr. Engel, Ms. Escobar, Ms. Eshoo, 
 Mr. Espaillat, Ms. Finkenauer, Ms. Frankel, Ms. Gabbard, Mr. Gallego, 
Mr. Garamendi, Mr. Garcia of Illinois, Mr. Golden, Mr. Gomez, Mr. Green 
  of Texas, Mr. Grijalva, Ms. Haaland, Mr. Harder of California, Mr. 
 Hastings, Mrs. Hayes, Mr. Heck, Mr. Higgins of New York, Ms. Hill of 
 California, Mr. Himes, Ms. Kendra S. Horn of Oklahoma, Mr. Horsford, 
Ms. Houlahan, Mr. Huffman, Ms. Jackson Lee, Ms. Jayapal, Ms. Johnson of 
 Texas, Mr. Johnson of Georgia, Ms. Kaptur, Ms. Kelly of Illinois, Mr. 
 Khanna, Mr. Kildee, Mr. Kilmer, Mr. Kim, Mr. Kind, Mrs. Kirkpatrick, 
    Mr. Krishnamoorthi, Ms. Kuster of New Hampshire, Mr. Lamb, Mr. 
    Langevin, Mr. Larson of Connecticut, Mrs. Lawrence, Ms. Lee of 
  California, Mrs. Lee of Nevada, Mr. Levin of Michigan, Mr. Levin of 
California, Mr. Lipinski, Mr. Loebsack, Mr. Lowenthal, Mrs. Lowey, Mr. 
 Lujan, Mrs. Luria, Mr. Lynch, Mr. Malinowski, Mrs. Carolyn B. Maloney 
  of New York, Mr. Sean Patrick Maloney of New York, Ms. Matsui, Mr. 
  McAdams, Mrs. McBath, Ms. McCollum, Mr. McEachin, Mr. McGovern, Mr. 
Meeks, Mr. Morelle, Mr. Moulton, Ms. Mucarsel-Powell, Mrs. Murphy, Mr. 
  Nadler, Mrs. Napolitano, Mr. Neguse, Mr. Norcross, Ms. Norton, Mr. 
    O'Halleran, Ms. Omar, Mr. Pallone, Mr. Panetta, Mr. Pappas, Mr. 
    Pascrell, Mr. Peters, Mr. Phillips, Mr. Pocan, Ms. Porter, Ms. 
 Pressley, Mr. Price of North Carolina, Mr. Quigley, Miss Rice of New 
York, Mr. Rose of New York, Mr. Rouda, Ms. Roybal-Allard, Mr. Ruiz, Mr. 
   Ryan, Ms. Sanchez, Mr. Sarbanes, Ms. Scanlon, Ms. Schakowsky, Mr. 
    Schiff, Mr. Schrader, Ms. Schrier, Mr. Schneider, Mr. Scott of 
 Virginia, Mr. David Scott of Georgia, Mr. Serrano, Ms. Sherrill, Mr. 
    Sires, Mr. Smith of Washington, Ms. Spanberger, Ms. Speier, Mr. 
   Stanton, Ms. Stevens, Mr. Suozzi, Mr. Swalwell of California, Mr. 
Takano, Mr. Thompson of California, Ms. Tlaib, Ms. Torres Small of New 
  Mexico, Mrs. Trahan, Mr. Van Drew, Mr. Vargas, Ms. Velazquez, Mrs. 
 Watson Coleman, Mr. Welch, Ms. Wild, and Mr. Yarmuth) introduced the 
     following bill; which was referred to the Committee on House 
Administration, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
   To amend the Federal Election Campaign Act of 1971 to provide for 
      additional disclosure requirements for corporations, labor 
 organizations, Super PACs and other entities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Democracy Is 
Strengthened by Casting Light On Spending in Elections Act of 2019'' or 
the ``DISCLOSE Act of 2019''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                         TITLE I--DISCLOSE ACT

          Subtitle A--Regulation of Certain Political Spending

Sec. 101. Clarification of prohibition on participation by foreign 
                            nationals in election-related activities.
Sec. 102. Clarification of application of foreign money ban to certain 
                            disbursements and activities.
Sec. 103. Audit and report on illicit foreign money in Federal 
                            elections.
Sec. 104. Prohibition on contributions and donations by foreign 
                            nationals in connections with ballot 
                            initiatives and referenda.
Sec. 105. Disbursements and activities subject to foreign money ban.
        Subtitle B--Reporting of Campaign-Related Disbursements

Sec. 111. Reporting of campaign-related disbursements.
Sec. 112. Application of foreign money ban to disbursements for 
                            campaign-related disbursements consisting 
                            of covered transfers.
Sec. 113. Effective date.
                    TITLE II--STAND BY EVERY AD ACT

Sec. 201. Short title.
Sec. 202. Stand By Every Ad.
Sec. 203. Disclaimer requirements for communications made through 
                            prerecorded telephone calls.
Sec. 204. No expansion of persons subject to disclaimer requirements on 
                            Internet communications.
Sec. 205. Effective date.
                      TITLE III--OTHER PROVISIONS

Sec. 301. Severability.

                         TITLE I--DISCLOSE ACT

          Subtitle A--Regulation of Certain Political Spending

SEC. 101. CLARIFICATION OF PROHIBITION ON PARTICIPATION BY FOREIGN 
              NATIONALS IN ELECTION-RELATED ACTIVITIES.

    (a) Clarification of Prohibition.--Section 319(a) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(3) a foreign national to direct, dictate, control, or 
        directly or indirectly participate in the decision making 
        process of any person (including a corporation, labor 
        organization, political committee, or political organization) 
        with regard to such person's Federal or non-Federal election-
        related activity, including any decision concerning the making 
        of contributions, donations, expenditures, or disbursements in 
        connection with an election for any Federal, State, or local 
        office or any decision concerning the administration of a 
        political committee.''.
    (b) Certification of Compliance.--Section 319 of such Act (52 
U.S.C. 30121) is amended by adding at the end the following new 
subsection:
    ``(c) Certification of Compliance Required Prior To Carrying Out 
Activity.--Prior to the making in connection with an election for 
Federal office of any contribution, donation, expenditure, independent 
expenditure, or disbursement for an electioneering communication by a 
corporation, limited liability corporation, or partnership during a 
year, the chief executive officer of the corporation, limited liability 
corporation, or partnership (or, if the corporation, limited liability 
corporation, or partnership does not have a chief executive officer, 
the highest ranking official of the corporation, limited liability 
corporation, or partnership), shall file a certification with the 
Commission, under penalty of perjury, that a foreign national did not 
direct, dictate, control, or directly or indirectly participate in the 
decision making process relating to such activity in violation of 
subsection (a)(3), unless the chief executive officer has previously 
filed such a certification during that calendar year.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the expiration of the 180-day period which begins on the 
date of the enactment of this Act, and shall take effect without regard 
to whether or not the Federal Election Commission has promulgated 
regulations to carry out such amendments.

SEC. 102. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN 
              DISBURSEMENTS AND ACTIVITIES.

    (a) Application to Disbursements to Super PACs.--Section 
319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30121(a)(1)(A)) is amended by striking the semicolon and inserting the 
following: ``, including any disbursement to a political committee 
which accepts donations or contributions that do not comply with the 
limitations, prohibitions, and reporting requirements of this Act (or 
any disbursement to or on behalf of any account of a political 
committee which is established for the purpose of accepting such 
donations or contributions);''.
    (b) Conditions Under Which Corporate PACs May Make Contributions 
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is 
amended by adding at the end the following new paragraph:
    ``(8) A separate segregated fund established by a corporation may 
not make a contribution or expenditure during a year unless the fund 
has certified to the Commission the following during the year:
            ``(A) Each individual who manages the fund, and who is 
        responsible for exercising decisionmaking authority for the 
        fund, is a citizen of the United States or is lawfully admitted 
        for permanent residence in the United States.
            ``(B) No foreign national under section 319 participates in 
        any way in the decisionmaking processes of the fund with regard 
        to contributions or expenditures under this Act.
            ``(C) The fund does not solicit or accept recommendations 
        from any foreign national under section 319 with respect to the 
        contributions or expenditures made by the fund.
            ``(D) Any member of the board of directors of the 
        corporation who is a foreign national under section 319 
        abstains from voting on matters concerning the fund or its 
        activities.''.

SEC. 103. AUDIT AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL 
              ELECTIONS.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section 
319 the following new section:

``SEC. 319A. AUDIT AND REPORT ON DISBURSEMENTS BY FOREIGN NATIONALS.

    ``(a) Audit.--
            ``(1) In general.--The Commission shall conduct an audit 
        after each Federal election cycle to determine the incidence of 
        illicit foreign money in such Federal election cycle.
            ``(2) Procedures.--In carrying out paragraph (1), the 
        Commission shall conduct random audits of any disbursements 
        required to be reported under this Act, in accordance with 
        procedures established by the Commission.
    ``(b) Report.--Not later than 180 days after the end of each 
Federal election cycle, the Commission shall submit to Congress a 
report containing--
            ``(1) results of the audit required by subsection (a)(1); 
        and
            ``(2) recommendations to address the presence of illicit 
        foreign money in elections, as appropriate.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `Federal election cycle' means the period 
        which begins on the day after the date of a regularly scheduled 
        general election for Federal office and which ends on the date 
        of the first regularly scheduled general election for Federal 
        office held after such date.
            ``(2) The term `illicit foreign money' means any 
        disbursement by a foreign national (as defined in section 
        319(b)) prohibited under such section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the Federal election cycle that began during 
November 2018, and each succeeding Federal election cycle.

SEC. 104. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN 
              NATIONALS IN CONNECTIONS WITH BALLOT INITIATIVES AND 
              REFERENDA.

    (a) In General.--Section 319(a)(1)(A) of the Federal Election 
Campaign Act of 1971 (52 U.S.C. 30121(a)(1)(A)) is amended by striking 
``election;'' and inserting the following: ``election, including a 
State or local ballot initiative or referendum;''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to elections held in 2020 or any succeeding year.

SEC. 105. DISBURSEMENTS AND ACTIVITIES SUBJECT TO FOREIGN MONEY BAN.

    (a) Disbursements Described.--Section 319(a)(1) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (B); and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) an expenditure;
                    ``(D) an independent expenditure;
                    ``(E) a disbursement for an electioneering 
                communication (within the meaning of section 
                304(f)(3));
                    ``(F) a disbursement for a paid internet or paid 
                digital communication that refers to a clearly 
                identified candidate for election for Federal office 
                and is disseminated within 60 days before a general, 
                special or runoff election for the office sought by the 
                candidate or 30 days before a primary or preference 
                election, or a convention or caucus of a political 
                party that has authority to nominate a candidate for 
                the office sought by the candidate;
                    ``(G) a disbursement for a broadcast, cable or 
                satellite communication, or for a paid internet or paid 
                digital communication, that promotes, supports, attacks 
                or opposes the election of a clearly identified 
                candidate for Federal, State, or local office 
                (regardless of whether the communication contains 
                express advocacy or the functional equivalent of 
                express advocacy) and is for the purpose of influencing 
                an election; or
                    ``(H) a disbursement for a broadcast, cable, or 
                satellite communication, or for any communication which 
                is placed or promoted for a fee on an online platform, 
                that discusses a national legislative issue of public 
                importance in a year in which a regularly scheduled 
                general election for Federal office is held, but only 
                if the disbursement is made by a foreign principal who 
                is a government of a foreign country or a foreign 
                political party or an agent of such a foreign principal 
                under the Foreign Agents Registration Act of 1938, as 
                amended.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to disbursements made on or after the date of the 
enactment of this Act.

        Subtitle B--Reporting of Campaign-Related Disbursements

SEC. 111. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.

    (a) Disclosure Requirements for Corporations, Labor Organizations, 
and Certain Other Entities.--
            (1) In general.--Section 324 of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30126) is amended to read as 
        follows:

``SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSEMENTS BY COVERED 
              ORGANIZATIONS.

    ``(a) Disclosure Statement.--
            ``(1) In general.--Any covered organization that makes 
        campaign-related disbursements aggregating more than $10,000 in 
        an election reporting cycle shall, not later than 24 hours 
        after each disclosure date, file a statement with the 
        Commission made under penalty of perjury that contains the 
        information described in paragraph (2)--
                    ``(A) in the case of the first statement filed 
                under this subsection, for the period beginning on the 
                first day of the election reporting cycle (or, if 
                earlier, the period beginning one year before the first 
                such disclosure date) and ending on the first such 
                disclosure date; and
                    ``(B) in the case of any subsequent statement filed 
                under this subsection, for the period beginning on the 
                previous disclosure date and ending on such disclosure 
                date.
            ``(2) Information described.--The information described in 
        this paragraph is as follows:
                    ``(A) The name of the covered organization and the 
                principal place of business of such organization and, 
                in the case of a covered organization that is a 
                corporation (other than a business concern that is an 
                issuer of a class of securities registered under 
                section 12 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78l) or that is required to file reports under 
                section 15(d) of that Act (15 U.S.C. 78o(d))) or an 
                entity described in subsection (e)(2), a list of the 
                beneficial owners (as defined in paragraph (4)(A)) of 
                the entity that--
                            ``(i) identifies each beneficial owner by 
                        name and current residential or business street 
                        address; and
                            ``(ii) if any beneficial owner exercises 
                        control over the entity through another legal 
                        entity, such as a corporation, partnership, 
                        limited liability company, or trust, identifies 
                        each such other legal entity and each such 
                        beneficial owner who will use that other entity 
                        to exercise control over the entity.
                    ``(B) The amount of each campaign-related 
                disbursement made by such organization during the 
                period covered by the statement of more than $1,000, 
                and the name and address of the person to whom the 
                disbursement was made.
                    ``(C) In the case of a campaign-related 
                disbursement that is not a covered transfer, the 
                election to which the campaign-related disbursement 
                pertains and if the disbursement is made for a public 
                communication, the name of any candidate identified in 
                such communication and whether such communication is in 
                support of or in opposition to a candidate.
                    ``(D) A certification by the chief executive 
                officer or person who is the head of the covered 
                organization that the campaign-related disbursement is 
                not made in cooperation, consultation, or concert with 
                or at the request or suggestion of a candidate, 
                authorized committee, or agent of a candidate, 
                political party, or agent of a political party.
                    ``(E)(i) If the covered organization makes 
                campaign-related disbursements using exclusively funds 
                in a segregated bank account consisting of funds that 
                were paid directly to such account by persons other 
                than the covered organization that controls the 
                account, for each such payment to the account--
                            ``(I) the name and address of each person 
                        who made such payment during the period covered 
                        by the statement;
                            ``(II) the date and amount of such payment; 
                        and
                            ``(III) the aggregate amount of all such 
                        payments made by the person during the period 
                        beginning on the first day of the election 
                        reporting cycle (or, if earlier, the period 
                        beginning one year before the disclosure date) 
                        and ending on the disclosure date,
                but only if such payment was made by a person who made 
                payments to the account in an aggregate amount of 
                $10,000 or more during the period beginning on the 
                first day of the election reporting cycle (or, if 
                earlier, the period beginning one year before the 
                disclosure date) and ending on the disclosure date.
                    ``(ii) In any calendar year after 2020, section 
                315(c)(1)(B) shall apply to the amount described in 
                clause (i) in the same manner as such section applies 
                to the limitations established under subsections 
                (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, 
                except that for purposes of applying such section to 
                the amounts described in subsection (b), the `base 
                period' shall be 2020.
                    ``(F)(i) If the covered organization makes 
                campaign-related disbursements using funds other than 
                funds in a segregated bank account described in 
                subparagraph (E), for each payment to the covered 
                organization--
                            ``(I) the name and address of each person 
                        who made such payment during the period covered 
                        by the statement;
                            ``(II) the date and amount of such payment; 
                        and
                            ``(III) the aggregate amount of all such 
                        payments made by the person during the period 
                        beginning on the first day of the election 
                        reporting cycle (or, if earlier, the period 
                        beginning one year before the disclosure date) 
                        and ending on the disclosure date,
                but only if such payment was made by a person who made 
                payments to the covered organization in an aggregate 
                amount of $10,000 or more during the period beginning 
                on the first day of the election reporting cycle (or, 
                if earlier, the period beginning one year before the 
                disclosure date) and ending on the disclosure date.
                    ``(ii) In any calendar year after 2020, section 
                315(c)(1)(B) shall apply to the amount described in 
                clause (i) in the same manner as such section applies 
                to the limitations established under subsections 
                (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, 
                except that for purposes of applying such section to 
                the amounts described in subsection (b), the `base 
                period' shall be 2020.
                    ``(G) Such other information as required in rules 
                established by the Commission to promote the purposes 
                of this section.
            ``(3) Exceptions.--
                    ``(A) Amounts received in ordinary course of 
                business.--The requirement to include in a statement 
                filed under paragraph (1) the information described in 
                paragraph (2) shall not apply to amounts received by 
                the covered organization in commercial transactions in 
                the ordinary course of any trade or business conducted 
                by the covered organization or in the form of 
                investments (other than investments by the principal 
                shareholder in a limited liability corporation) in the 
                covered organization. For purposes of this 
                subparagraph, amounts received by a covered 
                organization as remittances from an employee to the 
                employee's collective bargaining representative shall 
                be treated as amounts received in commercial 
                transactions in the ordinary course of the business 
                conducted by the covered organization.
                    ``(B) Donor restriction on use of funds.--The 
                requirement to include in a statement submitted under 
                paragraph (1) the information described in subparagraph 
                (F) of paragraph (2) shall not apply if--
                            ``(i) the person described in such 
                        subparagraph prohibited, in writing, the use of 
                        the payment made by such person for campaign-
                        related disbursements; and
                            ``(ii) the covered organization agreed to 
                        follow the prohibition and deposited the 
                        payment in an account which is segregated from 
                        any account used to make campaign-related 
                        disbursements.
                    ``(C) Threat of harassment or reprisal.--The 
                requirement to include any information relating to the 
                name or address of any person (other than a candidate) 
                in a statement submitted under paragraph (1) shall not 
                apply if the inclusion of the information would subject 
                the person to serious threats, harassment, or 
                reprisals.
            ``(4) Other definitions.--For purposes of this section:
                    ``(A) Beneficial owner defined.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `beneficial owner' means, 
                        with respect to any entity, a natural person 
                        who, directly or indirectly--
                                    ``(I) exercises substantial control 
                                over an entity through ownership, 
                                voting rights, agreement, or otherwise; 
                                or
                                    ``(II) has a substantial interest 
                                in or receives substantial economic 
                                benefits from the assets of an entity.
                            ``(ii) Exceptions.--The term `beneficial 
                        owner' shall not include--
                                    ``(I) a minor child;
                                    ``(II) a person acting as a 
                                nominee, intermediary, custodian, or 
                                agent on behalf of another person;
                                    ``(III) a person acting solely as 
                                an employee of an entity and whose 
                                control over or economic benefits from 
                                the entity derives solely from the 
                                employment status of the person;
                                    ``(IV) a person whose only interest 
                                in an entity is through a right of 
                                inheritance, unless the person also 
                                meets the requirements of clause (i); 
                                or
                                    ``(V) a creditor of an entity, 
                                unless the creditor also meets the 
                                requirements of clause (i).
                            ``(iii) Anti-abuse rule.--The exceptions 
                        under clause (ii) shall not apply if used for 
                        the purpose of evading, circumventing, or 
                        abusing the provisions of clause (i) or 
                        paragraph (2)(A).
                    ``(B) Disclosure date.--The term `disclosure date' 
                means--
                            ``(i) the first date during any election 
                        reporting cycle by which a person has made 
                        campaign-related disbursements aggregating more 
                        than $10,000; and
                            ``(ii) any other date during such election 
                        reporting cycle by which a person has made 
                        campaign-related disbursements aggregating more 
                        than $10,000 since the most recent disclosure 
                        date for such election reporting cycle.
                    ``(C) Election reporting cycle.--The term `election 
                reporting cycle' means the 2-year period beginning on 
                the date of the most recent general election for 
                Federal office.
                    ``(D) Payment.--The term `payment' includes any 
                contribution, donation, transfer, payment of dues, or 
                other payment.
    ``(b) Coordination With Other Provisions.--
            ``(1) Other reports filed with the commission.--Information 
        included in a statement filed under this section may be 
        excluded from statements and reports filed under section 304.
            ``(2) Treatment as separate segregated fund.--A segregated 
        bank account referred to in subsection (a)(2)(E) may be treated 
        as a separate segregated fund for purposes of section 527(f)(3) 
        of the Internal Revenue Code of 1986.
    ``(c) Filing.--Statements required to be filed under subsection (a) 
shall be subject to the requirements of section 304(d) to the same 
extent and in the same manner as if such reports had been required 
under subsection (c) or (g) of section 304.
    ``(d) Campaign-Related Disbursement Defined.--
            ``(1) In general.--In this section, the term `campaign-
        related disbursement' means a disbursement by a covered 
        organization for any of the following:
                    ``(A) An independent expenditure which expressly 
                advocates the election or defeat of a clearly 
                identified candidate for election for Federal office, 
                or is the functional equivalent of express advocacy 
                because, when taken as a whole, it can be interpreted 
                by a reasonable person only as advocating the election 
                or defeat of a candidate for election for Federal 
                office.
                    ``(B) Any public communication which refers to a 
                clearly identified candidate for election for Federal 
                office and which promotes or supports the election of a 
                candidate for that office, or attacks or opposes the 
                election of a candidate for that office, without regard 
                to whether the communication expressly advocates a vote 
                for or against a candidate for that office.
                    ``(C) An electioneering communication, as defined 
                in section 304(f)(3).
                    ``(D) A covered transfer.
            ``(2) Intent not required.--A disbursement for an item 
        described in subparagraph (A), (B), (C), or (D) of paragraph 
        (1) shall be treated as a campaign-related disbursement 
        regardless of the intent of the person making the disbursement.
    ``(e) Covered Organization Defined.--In this section, the term 
`covered organization' means any of the following:
            ``(1) A corporation (other than an organization described 
        in section 501(c)(3) of the Internal Revenue Code of 1986).
            ``(2) A limited liability corporation that is not otherwise 
        treated as a corporation for purposes of this Act (other than 
        an organization described in section 501(c)(3) of the Internal 
        Revenue Code of 1986).
            ``(3) An organization described in section 501(c) of such 
        Code and exempt from taxation under section 501(a) of such Code 
        (other than an organization described in section 501(c)(3) of 
        such Code).
            ``(4) A labor organization (as defined in section 316(b)).
            ``(5) Any political organization under section 527 of the 
        Internal Revenue Code of 1986, other than a political committee 
        under this Act (except as provided in paragraph (6)).
            ``(6) A political committee with an account that accepts 
        donations or contributions that do not comply with the 
        contribution limits or source prohibitions under this Act, but 
        only with respect to such accounts.
    ``(f) Covered Transfer Defined.--
            ``(1) In general.--In this section, the term `covered 
        transfer' means any transfer or payment of funds by a covered 
        organization to another person if the covered organization--
                    ``(A) designates, requests, or suggests that the 
                amounts be used for--
                            ``(i) campaign-related disbursements (other 
                        than covered transfers); or
                            ``(ii) making a transfer to another person 
                        for the purpose of making or paying for such 
                        campaign-related disbursements;
                    ``(B) made such transfer or payment in response to 
                a solicitation or other request for a donation or 
                payment for--
                            ``(i) the making of or paying for campaign-
                        related disbursements (other than covered 
                        transfers); or
                            ``(ii) making a transfer to another person 
                        for the purpose of making or paying for such 
                        campaign-related disbursements;
                    ``(C) engaged in discussions with the recipient of 
                the transfer or payment regarding--
                            ``(i) the making of or paying for campaign-
                        related disbursements (other than covered 
                        transfers); or
                            ``(ii) donating or transferring any amount 
                        of such transfer or payment to another person 
                        for the purpose of making or paying for such 
                        campaign-related disbursements;
                    ``(D) made campaign-related disbursements (other 
                than a covered transfer) in an aggregate amount of 
                $50,000 or more during the 2-year period ending on the 
                date of the transfer or payment, or knew or had reason 
                to know that the person receiving the transfer or 
                payment made such disbursements in such an aggregate 
                amount during that 2-year period; or
                    ``(E) knew or had reason to know that the person 
                receiving the transfer or payment would make campaign-
                related disbursements in an aggregate amount of $50,000 
                or more during the 2-year period beginning on the date 
                of the transfer or payment.
            ``(2) Exclusions.--The term `covered transfer' does not 
        include any of the following:
                    ``(A) A disbursement made by a covered organization 
                in a commercial transaction in the ordinary course of 
                any trade or business conducted by the covered 
                organization or in the form of investments made by the 
                covered organization.
                    ``(B) A disbursement made by a covered organization 
                if--
                            ``(i) the covered organization prohibited, 
                        in writing, the use of such disbursement for 
                        campaign-related disbursements; and
                            ``(ii) the recipient of the disbursement 
                        agreed to follow the prohibition and deposited 
                        the disbursement in an account which is 
                        segregated from any account used to make 
                        campaign-related disbursements.
            ``(3) Special rule regarding transfers among affiliates.--
                    ``(A) Special rule.--A transfer of an amount by one 
                covered organization to another covered organization 
                which is treated as a transfer between affiliates under 
                subparagraph (C) shall be considered a covered transfer 
                by the covered organization which transfers the amount 
                only if the aggregate amount transferred during the 
                year by such covered organization to that same covered 
                organization is equal to or greater than $50,000.
                    ``(B) Determination of amount of certain payments 
                among affiliates.--In determining the amount of a 
                transfer between affiliates for purposes of 
                subparagraph (A), to the extent that the transfer 
                consists of funds attributable to dues, fees, or 
                assessments which are paid by individuals on a regular, 
                periodic basis in accordance with a per-individual 
                calculation which is made on a regular basis, the 
                transfer shall be attributed to the individuals paying 
                the dues, fees, or assessments and shall not be 
                attributed to the covered organization.
                    ``(C) Description of transfers between 
                affiliates.--A transfer of amounts from one covered 
                organization to another covered organization shall be 
                treated as a transfer between affiliates if--
                            ``(i) one of the organizations is an 
                        affiliate of the other organization; or
                            ``(ii) each of the organizations is an 
                        affiliate of the same organization,
                except that the transfer shall not be treated as a 
                transfer between affiliates if one of the organizations 
                is established for the purpose of making campaign-
                related disbursements.
                    ``(D) Determination of affiliate status.--For 
                purposes of subparagraph (C), a covered organization is 
                an affiliate of another covered organization if--
                            ``(i) the governing instrument of the 
                        organization requires it to be bound by 
                        decisions of the other organization;
                            ``(ii) the governing board of the 
                        organization includes persons who are 
                        specifically designated representatives of the 
                        other organization or are members of the 
                        governing board, officers, or paid executive 
                        staff members of the other organization, or 
                        whose service on the governing board is 
                        contingent upon the approval of the other 
                        organization; or
                            ``(iii) the organization is chartered by 
                        the other organization.
                    ``(E) Coverage of transfers to affiliated section 
                501(c)(3) organizations.--This paragraph shall apply 
                with respect to an amount transferred by a covered 
                organization to an organization described in paragraph 
                (3) of section 501(c) of the Internal Revenue Code of 
                1986 and exempt from tax under section 501(a) of such 
                Code in the same manner as this paragraph applies to an 
                amount transferred by a covered organization to another 
                covered organization.
    ``(g) No Effect on Other Reporting Requirements.--Nothing in this 
section shall be construed to waive or otherwise affect any other 
requirement of this Act which relates to the reporting of campaign-
related disbursements.''.
            (2) Conforming amendment.--Section 304(f)(6) of such Act 
        (52 U.S.C. 30104) is amended by striking ``Any requirement'' 
        and inserting ``Except as provided in section 324(b), any 
        requirement''.
    (b) Coordination With FinCEN.--
            (1) In general.--The Director of the Financial Crimes 
        Enforcement Network of the Department of the Treasury shall 
        provide the Federal Election Commission with such information 
        as necessary to assist in administering and enforcing section 
        324 of the Federal Election Campaign Act of 1971, as added by 
        this section.
            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Chairman of the Federal Election 
        Commission, in consultation with the Director of the Financial 
        Crimes Enforcement Network of the Department of the Treasury, 
        shall submit to Congress a report with recommendations for 
        providing further legislative authority to assist in the 
        administration and enforcement of such section 324.

SEC. 112. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR 
              CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED 
              TRANSFERS.

    Section 319(a)(1)(A) of the Federal Election Campaign Act of 1971 
(52 U.S.C. 30121(a)(1)(A)), as amended by section 102, is amended by 
striking the semicolon and inserting the following: ``, and any 
disbursement, other than a disbursement described in section 
324(a)(3)(A), to another person who made a campaign-related 
disbursement consisting of a covered transfer (as described in section 
324) during the 2-year period ending on the date of the 
disbursement;''.

SEC. 113. EFFECTIVE DATE.

    The amendments made by this subtitle shall apply with respect to 
disbursements made on or after January 1, 2020, and shall take effect 
without regard to whether or not the Federal Election Commission has 
promulgated regulations to carry out such amendments.

                    TITLE II--STAND BY EVERY AD ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Stand By Every Ad Act''.

SEC. 202. STAND BY EVERY AD.

    (a) Expanded Disclaimer Requirements for Certain Communications.--
Section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30120) is amended by adding at the end the following new subsection:
    ``(e) Expanded Disclaimer Requirements for Communications Not 
Authorized by Candidates or Committees.--
            ``(1) In general.--Except as provided in paragraph (6), any 
        communication described in paragraph (3) of subsection (a) 
        which is transmitted in an audio or video format (including an 
        Internet or digital communication), or which is an Internet or 
        digital communication transmitted in a text or graphic format, 
        shall include, in addition to the requirements of paragraph (3) 
        of subsection (a), the following:
                    ``(A) The individual disclosure statement described 
                in paragraph (2)(A) (if the person paying for the 
                communication is an individual) or the organizational 
                disclosure statement described in paragraph (2)(B) (if 
                the person paying for the communication is not an 
                individual).
                    ``(B) If the communication is transmitted in a 
                video format, or is an Internet or digital 
                communication which is transmitted in a text or graphic 
                format, and is paid for in whole or in part with a 
                payment which is treated as a campaign-related 
                disbursement under section 324--
                            ``(i) the Top Five Funders list (if 
                        applicable); or
                            ``(ii) in the case of a communication 
                        which, as determined on the basis of criteria 
                        established in regulations issued by the 
                        Commission, is of such short duration that 
                        including the Top Five Funders list in the 
                        communication would constitute a hardship to 
                        the person paying for the communication by 
                        requiring a disproportionate amount of the 
                        content of the communication to consist of the 
                        Top Five Funders list, the name of a website 
                        which contains the Top Five Funders list (if 
                        applicable) or, in the case of an Internet or 
                        digital communication, a hyperlink to such 
                        website.
                    ``(C) If the communication is transmitted in an 
                audio format and is paid for in whole or in part with a 
                payment which is treated as a campaign-related 
                disbursement under section 324--
                            ``(i) the Top Two Funders list (if 
                        applicable); or
                            ``(ii) in the case of a communication 
                        which, as determined on the basis of criteria 
                        established in regulations issued by the 
                        Commission, is of such short duration that 
                        including the Top Two Funders list in the 
                        communication would constitute a hardship to 
                        the person paying for the communication by 
                        requiring a disproportionate amount of the 
                        content of the communication to consist of the 
                        Top Two Funders list, the name of a website 
                        which contains the Top Two Funders list (if 
                        applicable).
            ``(2) Disclosure statements described.--
                    ``(A) Individual disclosure statements.--The 
                individual disclosure statement described in this 
                subparagraph is the following: `I am ________, and I 
                approve this message.', with the blank filled in with 
                the name of the applicable individual.
                    ``(B) Organizational disclosure statements.--The 
                organizational disclosure statement described in this 
                subparagraph is the following: `I am ________, the 
                ________ of ________, and ________ approves this 
                message.', with--
                            ``(i) the first blank to be filled in with 
                        the name of the applicable individual;
                            ``(ii) the second blank to be filled in 
                        with the title of the applicable individual; 
                        and
                            ``(iii) the third and fourth blank each to 
                        be filled in with the name of the organization 
                        or other person paying for the communication.
            ``(3) Method of conveyance of statement.--
                    ``(A) Communications in text or graphic format.--In 
                the case of a communication to which this subsection 
                applies which is transmitted in a text or graphic 
                format, the disclosure statements required under 
                paragraph (1) shall appear in letters at least as large 
                as the majority of the text in the communication.
                    ``(B) Communications transmitted in audio format.--
                In the case of a communication to which this subsection 
                applies which is transmitted in an audio format, the 
                disclosure statements required under paragraph (1) 
                shall be made by audio by the applicable individual in 
                a clear and conspicuous manner.
                    ``(C) Communications transmitted in video format.--
                In the case of a communication to which this subsection 
                applies which is transmitted in a video format, the 
                information required under paragraph (1)--
                            ``(i) shall appear in writing at the end of 
                        the communication or in a crawl along the 
                        bottom of the communication in a clear and 
                        conspicuous manner, with a reasonable degree of 
                        color contrast between the background and the 
                        printed statement, for a period of at least 6 
                        seconds; and
                            ``(ii) shall also be conveyed by an 
                        unobscured, full-screen view of the applicable 
                        individual or by the applicable individual 
                        making the statement in voice-over accompanied 
                        by a clearly identifiable photograph or similar 
                        image of the individual, except in the case of 
                        a Top Five Funders list.
            ``(4) Applicable individual defined.--The term `applicable 
        individual' means, with respect to a communication to which 
        this subsection applies--
                    ``(A) if the communication is paid for by an 
                individual, the individual involved;
                    ``(B) if the communication is paid for by a 
                corporation, the chief executive officer of the 
                corporation (or, if the corporation does not have a 
                chief executive officer, the highest ranking official 
                of the corporation);
                    ``(C) if the communication is paid for by a labor 
                organization, the highest ranking officer of the labor 
                organization; and
                    ``(D) if the communication is paid for by any other 
                person, the highest ranking official of such person.
            ``(5) Top five funders list and top two funders list 
        defined.--
                    ``(A) Top five funders list.--The term `Top Five 
                Funders list' means, with respect to a communication 
                which is paid for in whole or in part with a campaign-
                related disbursement (as defined in section 324), a 
                list of the five persons who, during the 12-month 
                period ending on the date of the disbursement, provided 
                the largest payments of any type in an aggregate amount 
                equal to or exceeding $10,000 to the person who is 
                paying for the communication and the amount of the 
                payments each such person provided. If two or more 
                people provided the fifth largest of such payments, the 
                person paying for the communication shall select one of 
                those persons to be included on the Top Five Funders 
                list.
                    ``(B) Top two funders list.--The term `Top Two 
                Funders list' means, with respect to a communication 
                which is paid for in whole or in part with a campaign-
                related disbursement (as defined in section 324), a 
                list of the persons who, during the 12-month period 
                ending on the date of the disbursement, provided the 
                largest and the second largest payments of any type in 
                an aggregate amount equal to or exceeding $10,000 to 
                the person who is paying for the communication and the 
                amount of the payments each such person provided. If 
                two or more persons provided the second largest of such 
                payments, the person paying for the communication shall 
                select one of those persons to be included on the Top 
                Two Funders list.
                    ``(C) Exclusion of certain payments.--For purposes 
                of subparagraphs (A) and (B), in determining the amount 
                of payments made by a person to a person paying for a 
                communication, there shall be excluded the following:
                            ``(i) Any amounts provided in the ordinary 
                        course of any trade or business conducted by 
                        the person paying for the communication or in 
                        the form of investments in the person paying 
                        for the communication.
                            ``(ii) Any payment which the person 
                        prohibited, in writing, from being used for 
                        campaign-related disbursements, but only if the 
                        person paying for the communication agreed to 
                        follow the prohibition and deposited the 
                        payment in an account which is segregated from 
                        any account used to make campaign-related 
                        disbursements.
            ``(6) Special rules for certain communications.--
                    ``(A) Exception for communications paid for by 
                political parties and certain political committees.--
                This subsection does not apply to any communication to 
                which subsection (d)(2) applies.
                    ``(B) Treatment of video communications lasting 10 
                seconds or less.--In the case of a communication to 
                which this subsection applies which is transmitted in a 
                video format, or is an Internet or digital 
                communication which is transmitted in a text or graphic 
                format, the communication shall meet the following 
                requirements:
                            ``(i) The communication shall include the 
                        individual disclosure statement described in 
                        paragraph (2)(A) (if the person paying for the 
                        communication is an individual) or the 
                        organizational disclosure statement described 
                        in paragraph (2)(B) (if the person paying for 
                        the communication is not an individual).
                            ``(ii) The statement described in clause 
                        (i) shall appear in writing at the end of the 
                        communication, or in a crawl along the bottom 
                        of the communication, in a clear and 
                        conspicuous manner, with a reasonable degree of 
                        color contrast between the background and the 
                        printed statement, for a period of at least 4 
                        seconds.
                            ``(iii) The communication shall include, in 
                        a clear and conspicuous manner, a website 
                        address with a landing page which will provide 
                        all of the information described in paragraph 
                        (1) with respect to the communication. Such 
                        address shall appear for the full duration of 
                        the communication.
                            ``(iv) To the extent that the format in 
                        which the communication is made permits the use 
                        of a hyperlink, the communication shall include 
                        a hyperlink to the website address described in 
                        clause (iii).''.
    (b) Application of Expanded Requirements to Public Communications 
Consisting of Campaign-Related Disbursements.--Section 318(a) of such 
Act (52 U.S.C. 30120(a)) is amended by striking ``for the purpose of 
financing communications expressly advocating the election or defeat of 
a clearly identified candidate'' and inserting ``for a campaign-related 
disbursement, as defined in section 324, consisting of a public 
communication''.
    (c) Exception for Communications Paid for by Political Parties and 
Certain Political Committees.--Section 318(d)(2) of such Act (52 U.S.C. 
30120(d)(2)) is amended--
            (1) in the heading, by striking ``others'' and inserting 
        ``certain political committees'';
            (2) by striking ``Any communication'' and inserting ``(A) 
        Any communication'';
            (3) by inserting ``which (except to the extent provided in 
        subparagraph (B)) is paid for by a political committee 
        (including a political committee of a political party) and'' 
        after ``subsection (a)'';
            (4) by striking ``or other person'' each place it appears; 
        and
            (5) by adding at the end the following new subparagraph:
            ``(B)(i) This paragraph does not apply to a communication 
        paid for in whole or in part during a calendar year with a 
        campaign-related disbursement, but only if the covered 
        organization making the campaign-related disbursement made 
        campaign-related disbursements (as defined in section 324) 
        aggregating more than $10,000 during such calendar year.
            ``(ii) For purposes of clause (i), in determining the 
        amount of campaign-related disbursements made by a covered 
        organization during a year, there shall be excluded the 
        following:
                    ``(I) Any amounts received by the covered 
                organization in the ordinary course of any trade or 
                business conducted by the covered organization or in 
                the form of investments in the covered organization.
                    ``(II) Any amounts received by the covered 
                organization from a person who prohibited, in writing, 
                the organization from using such amounts for campaign-
                related disbursements, but only if the covered 
                organization agreed to follow the prohibition and 
                deposited the amounts in an account which is segregated 
                from any account used to make campaign-related 
                disbursements.''.

SEC. 203. DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS MADE THROUGH 
              PRERECORDED TELEPHONE CALLS.

    (a) Application of Requirements.--
            (1) In general.--Section 318(a) of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30120(a)) is amended by 
        inserting after ``mailing,'' each place it appears the 
        following: ``telephone call which consists in substantial part 
        of a prerecorded audio message,''.
            (2) Application to communications subject to expanded 
        disclaimer requirements.--Section 318(e)(1) of such Act (52 
        U.S.C. 30120(e)(1)), as added by section 202(a), is amended in 
        the matter preceding subparagraph (A) by striking ``which is 
        transmitted in an audio or video format'' and inserting ``which 
        is transmitted in an audio or video format or which consists of 
        a telephone call consisting in substantial part of a 
        prerecorded audio message''.
    (b) Treatment as Communication Transmitted in Audio Format.--
            (1) Communications by candidates or authorized persons.--
        Section 318(d) of such Act (52 U.S.C. 30120(d)) is amended by 
        adding at the end the following new paragraph:
            ``(3) Prerecorded telephone calls.--Any communication 
        described in paragraph (1), (2), or (3) of subsection (a) 
        (other than a communication which is subject to subsection (e)) 
        which is a telephone call consisting in substantial part of a 
        prerecorded audio message shall include, in addition to the 
        requirements of such paragraph, the audio statement required 
        under subparagraph (A) of paragraph (1) or the audio statement 
        required under paragraph (2) (whichever is applicable), except 
        that the statement shall be made at the beginning of the 
        telephone call.''.
            (2) Communications subject to expanded disclaimer 
        requirements.--Section 318(e)(3) of such Act (52 U.S.C. 
        30120(e)(3)), as added by section 202(a), is amended by adding 
        at the end the following new subparagraph:
                    ``(D) Prerecorded telephone calls.--In the case of 
                a communication to which this subsection applies which 
                is a telephone call consisting in substantial part of a 
                prerecorded audio message, the communication shall be 
                considered to be transmitted in an audio format.''.

SEC. 204. NO EXPANSION OF PERSONS SUBJECT TO DISCLAIMER REQUIREMENTS ON 
              INTERNET COMMUNICATIONS.

    Nothing in this title or the amendments made by this title may be 
construed to require any person who is not required under section 318 
of the Federal Election Campaign Act of 1971 (as provided under section 
110.11 of title 11 of the Code of Federal Regulations) to include a 
disclaimer on communications made by the person through the internet to 
include any disclaimer on any such communications.

SEC. 205. EFFECTIVE DATE.

    The amendments made by this title shall apply with respect to 
communications made on or after January 1, 2020, and shall take effect 
without regard to whether or not the Federal Election Commission has 
promulgated regulations to carry out such amendments.

                      TITLE III--OTHER PROVISIONS

SEC. 301. SEVERABILITY.

    If any provision of this Act or amendment made by this Act, or the 
application of a provision or amendment to any person or circumstance, 
is held to be unconstitutional, the remainder of this Act and 
amendments made by this Act, and the application of the provisions and 
amendment to any person or circumstance, shall not be affected by the 
holding.
                                 <all>
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